I have a question on the assumptions behind Yield-To-Maturity.
I have read the Yield-To-Maturity (YTM) chapter on the Tuckman (chapter 3 on my edition) that explains why YTM is a measure of the realized return to maturity of a bond. My understanding of the explanation is as follow:
Could someone please explain the answers to these 3 questions in the second book af GARP official material (Quantitative Analysis)?
6. You simulate the price path of stock HHF using a geometric Brownian motion model with the fiollowing parameters:
Drift = 0
Volatility = 0.2
Time step =...